Buy Havells, TVS Motor, Ajanta Pharma; sell Union Bank: Taparia

Chandan Taparia, Derivative & Technical Analyst at Anand Rathi Securities told CNBC-TV18, "Buy Havells India. This stock has done well in last couple of weeks. We have seen the strong momentum in last two series with better rollover activity. It has consolidated in a range and taken multiple support near Rs 327 zone and it is holding the gains above 13-day moving average (DMA) and also holding above 50-DMA. So the stock looks quite strong, has added open interest (OI) by more than 4-5 percent in last two trading sessions and I am expecting it to head towards Rs 345. So recommending to go long with the stop loss of Rs 327.""Second trade is on TVS Motor. We have seen a sharp downside tick in the counter in just last week. It fell to Rs 340 zone and corrected towards Rs 277 levels. Now at lower levels, we are witnessing some Put writing at Rs 280-290 which indicates that supports are being held in the counter because of that we are interested to play the short covering bounce in the counter. Recommending to trade with 300 Call, keep the stop loss of Rs 5, expect this stock to move from Rs 8 to Rs 13-14," he said."Third trading idea on the buy side is on Ajanta Pharma. This stock is consolidating in a range but supports are shifting on the higher side and because of that I am expecting this stock to head towards the new lifetime high territory. One can buy with a stop loss of Rs 1,470 for target of Rs 1,560 on the higher side.""On the sell side, we have Union Bank of India. We have seen sustained selling in most of the PSU banks. Most of the PSU banks are adding built up of short positions like Bank of India (BOI), Indian Bank, Union Bank and Punjab National Bank (PNB). Union Bank has seen the built up of short position as open interest (OI) has been added by 6-7 percent and also broke a multiple support of Rs 122 zone. So recommending to sell on a small bounce back move with a stop loss of Rs 124 with downside potential target of Rs 113.50," he added."Last trading idea is on the negative side on Hindalco Industries. We have seen a pause in momentum in most of the metal counters, Vedanta, Hindalco, Tata Steel, Jindal Steel, JSW Steel, all started to decline. I will select Hindalco but I will trade with the Put suggesting to buy 90 Put, keep the stop loss of Rs 2.5 and this Put can move towards Rs 7."